South Africa and China Forge Stronger Economic Ties

South Africa’s Minister of Trade, Industry and Competition Ebrahim Patel and China’s Minister of Commerce Wang Wentao recently met in Pretoria to discuss trade, investment, and job creation. The aim of the talks was to increase trade and change its composition, while also strengthening economic ties.

Bilateral Trade Between South Africa and China

The bilateral trade between South Africa and China reached R900 billion ($60 billion) in 2022. Chinese investment in South Africa is now around R200 billion ($13 billion), mainly in mining, telecommunications, and manufacturing sectors.

Joint Economic and Trade Committee Meeting

The Joint Economic and Trade Committee (JETC) meeting was held to review the progress made in various Memoranda of Understanding (MoUs) being developed on different fields, including green and blue (ocean) economy, digital trade, investment, and Special Economic Zones.

Shifting Trade Composition

Minister Patel emphasized the need to shift away from a focus on raw materials and increase industrial exports of manufactured goods. This can be achieved through export promotion of South African goods, Chinese inward buying missions to South Africa, and increased Chinese investment in South African manufacturing industries.

Historical Trade Relations

The ministers discussed global growth and trade developments, emphasizing the importance of maintaining an open global trade and investment system. Minister Patel shared the story of the Kingdom of Mapungubwe, which traded with China, India, and Arabia over a thousand years ago.

Future Plans

Both countries agreed to intensify activities in the next six months to boost economic relations and implement agreed measures. The third phase of the South Africa-China relationship aims to support industrialization and the development of green industries in South Africa.

The South Africa-China relationship has strengthened over the years, with both parties agreeing to deepen their economic relationship. As the world becomes more polarized, fostering international cooperation and trade between South Africa and China is crucial for the benefit of both nations and global economic stability.